SAN FRANCISCO--(BUSINESS WIRE)-- Dolby Laboratories, Inc. (NYSE:DLB), through a subsidiary, has sued one of its licensees,ArcSoft®, Inc., with headquarters in Fremont, California, for failing to meet its contractual obligations with respect to sales and distribution of software containing Dolby's proprietary technology.

The lawsuit alleges that ArcSoft breached its contract with Dolby by, among other things, failing to meet its obligation to properly report, pay royalties, and permit audits for sales of software containing Dolby technology to numerous original equipment manufacturers (OEMs), as well as through direct sales of its software products to consumers.

"Dolby has long-standing relationships with hundreds of licensees worldwide, including the world's leading electronics, semiconductor, and software companies, based on decades of market-defining innovations and shared respect for Dolby's technology," said Andy Sherman, Dolby's General Counsel. "We have tried every possible alternative to resolve our issues outside of the court system, but Dolbyis unfortunately left with no choice but to protect its contractual and intellectual property rights."

The lawsuit was filed today in San Francisco County Superior Court.

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